Energy Vault Launches Asset Vault With $300M Boost

Energy Vault Holdings, Inc. has announced a significant financial agreement that will speed up the company’s growth in the global energy storage market. The firm has signed an exclusivity agreement for a $300 million non-dilutive preferred equity investment from a large infrastructure fund. This funding will establish “Asset Vault,” a wholly owned subsidiary that will develop, own, and manage large-scale energy storage projects in the U.S., Europe, and Australia. The investment is expected to unlock over $1 billion in capital expenditure, allowing for the deployment of 1.5 gigawatts of energy storage capacity in key markets worldwide.

Asset Vault will bring together Energy Vault’s operational, contracted, and pipeline energy storage assets into a single platform aimed at generating stable, long-term revenue streams. The company expects that Asset Vault will produce more than $100 million in recurring annual EBITDA within the next three to four years. This initiative is central to Energy Vault’s “Own and Operate” independent power producer (IPP) strategy. This strategy focuses on building and managing reliable energy infrastructure to meet the growing global demand for renewable integration and grid stability. This is especially relevant as artificial intelligence (AI) data centers significantly increase energy consumption.

Energy Vault Chairman and CEO Robert Piconi characterized the investment as a transformative step for the company. “The $300 million investment and the creation of Asset Vault unlock the full potential of our ‘Own and Operate’ storage IPP strategy with immediate investment flexibility,” Piconi said. “By combining long-term contracted revenues with strategic capital and integrated project execution, we are well positioned to scale reliable energy infrastructure to meet current needs driven by renewable energy growth and the rising energy demand from data center AI.”

The new subsidiary will remain under Energy Vault’s voting and operational control, benefiting from the parent company’s vertically integrated model that includes project development, engineering, procurement, construction, and long-term asset management. This structure allows the company to capture additional profit opportunities, increase total revenue, and maintain consistent quality throughout all project phases. Asset Vault’s initial portfolio highlights Energy Vault’s presence in the market. It includes operational projects like the Cross Trails Battery Energy Storage System (BESS), which has a capacity of 57MW/114MWh, and the Calistoga Resiliency Center, an 8.5MW/293MWh facility. These projects have secured long-term offtake agreements and have received $100 million in invested capital, along with project-level debt.

The contracted pipeline features the Stoney Creek BESS project in New South Wales, Australia, a 125MW/1.0GWh facility backed by a Long-Term Energy Service Agreement of up to 14 years with AEMO Services. Additionally, the company has about 3 gigawatts of BESS projects in development worldwide, including U.S.-based sites that can benefit from federal Investment Tax Credits (ITC), which improve project returns. The portfolio targets internal rates of return (IRRs) exceeding 15% over a 20-year asset lifespan, highlighting a strong financial outlook for the business.

Energy Vault’s flexible, technology-neutral approach allows it to deliver projects under various business models, such as energy-as-a-service, direct project sales, and long-term asset ownership. The establishment of Asset Vault adds a new aspect to this strategy by creating a dedicated vehicle for generating recurring revenue. This leverages the company’s ability to handle design, construction, and long-term operations independently. This integrated approach is expected to create more cash flow and liquidity for the parent company while providing investors and shareholders with confidence in stable, long-term returns.

The $300 million preferred equity investment has been structured to avoid diluting Energy Vault’s common shareholders. The arrangement also includes milestone-linked participation in the listed company to ensure alignment between the investor and existing shareholders. This reflects a shared commitment to strategic growth and sustainable profitability. The transaction is set to close within 30 to 60 days, pending standard regulatory approvals and conditions.

With Asset Vault, Energy Vault aims to become a leading player in the global energy storage sector. This comes at a time when grid operators and utilities increasingly seek reliable solutions to manage renewable energy variability. As the global shift toward clean energy accelerates and new demands arise from sectors like data centers, the need for scalable, efficient, and robust storage infrastructure is expected to rise significantly. Energy Vault’s leadership believes that this blend of strategic capital, effective project execution, and long-term asset ownership positions the company well in this transition.

By consolidating its portfolio and securing stable funding, Energy Vault intends not only to expand its market presence but also to fulfill its broader mission of enabling a cleaner, more resilient global energy system. Asset Vault signifies both a financial and strategic milestone, indicating the company’s transformation into a fully integrated, global energy storage owner-operator capable of adapting to a rapidly evolving energy landscape.